Grandstand. The recent controversy over the price of the baguette at 29 cents had the merit of raising a fundamental question: do we have the right to literally crush farmers between two contradictory demands? Rock bottom prices on the one hand and skyrocketing production costs on the other, as are sustainability requirements.
The alarming example of the banana should alert us, otherwise, as with wheat, everyone will lose in the end. What is it about ? Rarely, on January 12, the ministers of agriculture of seven major Latin American banana producing countries sounded the alarm on the crisis affecting smallholders and agricultural workers, rural communities and ultimately the environment. .
This urgent call to action highlights the current crisis and above all the shared responsibility of all actors in the supply chain in the balanced distribution of value. The stakes are not minor, they evoke a real geopolitics of our shopping carts: the banana is the most popular fruit in the world, the second most consumed in France, it has a world export value estimated at 8 billion euros per year.
Falling prices and rising production costs
The banana is a cornerstone of the economy of many countries and is part of the staple diet for more than 450 million people around the world. On the side of producers and workers, the situation is increasingly tense. In 2021, the price of a crate of bananas fell below the 10 euro mark, its lowest level for ten years.
At the same time, it is estimated that production costs have increased by 6%: producers lose money on each banana sold! Added to this are the skyrocketing costs of packaging materials and fertilizers, the economic repercussions of climate change, Covid-19 and the fight against diseases, such as Fusarium TR4.
The economic pressure that producers are under is such that it jeopardizes their livelihoods, their sustainable agricultural practices and their food security. The consequences are already being strongly felt, ranging from the difficulty of signing new contracts to the obligation to accept prices below the cost of production. They struggle to provide a vital income for themselves and their families, to reinvest in their farms, to maintain jobs and working conditions for thousands of workers in the sector in the producing regions.
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